ALUM , BRYAN BARILLA

OCTOBER 05, 2015

BSBA-2A

FINANCE

Cashless Society
A cashless society is a society in which cash and checks will no longer exist. A
new form of funds transferal will become common such as the use of credit cards or more
generally e-money.
In todays digital world, money is becoming much more a concept then a
physical entity. People are using credit cards and debit cards and other kinds of electronic
payments more and more everyday in order to pay for different goods & services.
Still, it is part of the human nature to need a tangible mean of payment. You can count
cash with your hands, you can feel it. In fact, it would be very difficult to make people
trust in digital money as the only form of currency.
On another hand, the cashless society has many opposants whos biggest
concern is the invasion of individual intimacy for money is untraceable, anonymous and
negotiable whereas digital payments are completely the opposite, every transaction is
recorded; marketing firms and governments are already using gathered information and
data about internet users and people are afraid of how this information being used.
However, this has some advantages such as being able to track down
terrorists, drug dealers and black markets because the only mean of payment would be
electronic.
My last point will be about that fact that a cashless society would rely on information
systems and technology. This makes digital money a sword with two edges since it is true
that it facilitates transactions and fund channeling but this whole system could collapse if
there were to be some kind of system error or a natural disaster which would damage the
whole technological infrastructure.

Many people today are using a mix of cash and online methods of payment. People are
increasingly paying their bills through banks and using credit cards and other online
transactions. In fact, sometimes some stores are becoming reluctant to accept cash. Does
this mean that cash is about to disappear? Many people think so, but others maintain that

notes and coins have too many advantages to disappear overnight. This essay will examine
whether or not we are moving to a cashless society.
However, notes and coins have been around for thousands of years because of their many
advantages. One outstanding characteristic of cash is that it is very fast. There is no
waiting for the transaction to take place. Furthermore cash is a universal language.
Illiterate people can use it, and the best currencies can be used anywhere in the world. A
third point is that cash does not require a highly developed infrastructure to support it.
There is no need for telephone lines, internet connections, credit card reader machines, or
other devices in an economy that depends on paper notes. This makes cash a very practical
solution in poorer countries, where the bulk of the worlds population lives. A big advantage
of cash is that the spender is able to spend only as much as he or she has. Contrast this
with credit cards, where the user may spend far more than he or she has, and can even end
up in debt. Some people expect that we will soon pay for everything from a microchip
embedded in our hand or in an ID card, but there are many people who oppose such
concentration of information in one source, and who prefer the anonymity of cash
transactions.
Despite being around for a relatively short time, credit cards, and other online
transactions have become popular because they offer several advantages over cash.
Electronic transactions can be tracked and analyzed, and this can help people to budget.
Another key point is that many also people feel that credit cards are safer and more
convenient, especially for large transactions. There is no need to carry around huge
bundles of money. The user is also protected against fraud, although in the long run he
pays through bank charges and fees. The big advantage that online transactions offer is
that the transaction is not limited by distance. It is easy to pay for something on the
internet or for your telephone bill without going to an office or traveling to another
country.
In conclusion, although there has been a remarkable change in the way people access and
spend their money, it is too early to say that cash and notes will disappear. Thirty years
ago, as computers became ubiquitous, people prophesized the paperless office. Today, our
desks are swamped by even more paper than thirty years ago. In my opinion, I think while
we may use more and more alternatives to cash, there will always be a place for the coins
and notes in our pockets.

Advantages:
1. Electronic payments will help business people grow their customer base and resource
pool, far beyond the limitations of their immediate geographic area.
1.

Using a payment card gives convenience and security than making cash withdrawal
and moving to where to make purchase.

2.

It will drive the development and modernisation of the payment system, promote
transparency and accountability, reduce transaction costs and decrease the size of the
gray or informal economy.

3.

It will reduce pickpocketing and highway robbery which is very rampant in some
countries.

4.

It will help users control reckless spending and improve personal accountability.

Disadvantages:
1. NO CASH/CURRENCY at hand. If you lose it may take a long while to procure another.
2. Someone can steal your card buy stuff. (only if they know the PIN).
3.Cash is not under your control.
4. Impractical if you move to another country
5.Cards get expired and then you have to buy new one which takes long time.
6.You may FORGET PIN.
7.Without cash there would be no instant payments for goods and services
8. Disadvantages of a cashless society consist of privacy issues and computer hackers.
9.BANKS WILL BE VERY POWERFULL
10.There will be high interest rates